When can Zoomin Groomin collect the initial fee from a North Dakota franchisee?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
North Dakota requires the Franchisor to defer collection of the Initial Fee until the Franchisor has completed all of their initial obligations owed to North Dakota Franchisees under the Franchise Agreement or other documents and the Franchisee has commenced doing business pursuant to the Franchise Agreement.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin FDD, the franchisor is required to defer collection of the initial franchise fee from franchisees in North Dakota until specific conditions are met. Zoomin Groomin must complete all of its initial obligations to the North Dakota franchisee as outlined in the Franchise Agreement or other related documents.
Furthermore, the North Dakota franchisee must have commenced business operations under the Franchise Agreement before Zoomin Groomin can collect the initial franchise fee. This requirement is specific to North Dakota and is designed to protect franchisees by ensuring that Zoomin Groomin fulfills its initial promises and that the franchisee is actively running the business before the initial fee is paid.
This addendum modifies the standard terms of the Franchise Agreement for North Dakota franchisees, highlighting the importance of reviewing state-specific addenda to understand any variations in the franchise terms. Prospective franchisees in North Dakota should carefully review the Franchise Agreement and related documents to understand Zoomin Groomin's initial obligations and ensure they are fulfilled before paying the initial franchise fee.